By Matthew Owens

As part of a Factorium mini-series on wages in Chile, Matthew Owens takes a look at average income levels around the country. First up is comparison of monthly income in Chile as a whole and by the regions by gender. The data for this analysis were drawn from the National Institute of Statistics, Chile. The current figures come form the Nueva Encuesta Suplementaria de Ingresos (NESI) and are given for 2012.

We can see from the table below that the average montly income for Chileans is 430,919 chilean pesos (CLP), or around £460 at the time of writing. There is a large gender gap biased towards men throughout the country and several regional differences worth pointing out. As might be expected, income is sigificantly higher in the nation's capital (Region Metropolitana) standing at 509,512 CLP but again driven largely by the men. Antofagasta, a mining area, shows some of the highest incomes with the noteable exception of Magallanes where incomes exceed those found in the capital for both men and women.

The analysis was based on a joint study, carried out by the Boston College Center for International Higher Education (CIHE) and the Laboratory for Institutional Analysis (LIA) at the Higher School of Economics in Moscow, in which 28 countries were surveyed. The study included all lecturers, both full and part-time and considered academic remuneration in terms of basic gross salaries in 2008 but incentives or bonuses were excluded from the analysis.

The figures are standardised using purchasing powerparity (PPP).

Top paying Chilean universities included Talca, Tecnológica Metropolitana and Tarapacá, awarding average monthly salaries of $5,725 USD, $4,564 USD and $4,283 USD, respectively. Surprisingly, the average salary at the highly regarded Universidad de Chile in Santiago was only slightly higher than the average for the country at $3,796 USD. The worst payers were Valparaíso and Playa Ancha, dolling out a mere average of $2,600 USD (les than an annual salary of £20,000).

]]>http://www.chileno.co.uk/chile/academic-salary-in-29-countries#commentshttp://www.chileno.co.uk/?tempskin=_rss2&disp=comments&p=184Economic growth in Chile tops OECDhttp://www.chileno.co.uk/economy/chile-economic-growth-tops-oecd
Thu, 29 Nov 2012 19:56:00 +0000ChilenoChileEconomy157@http://www.chileno.co.uk/<p>The latest OECD Economic Outlook report looks bleak for the majority of OECD countries and yet Chile is continuing its good growth of recent years. With 50 million out of work in the OECD areas, and no prospect of relief in the forseable future, the world economy is indeed "far from being out of the woods" as OECD Secretary General Angel Gurr&#237;a put it in the organisation's Economic Outloook launch. Nevertheless, Chile's growth is forecast to reach 5.4% in 2014, whcih compares favourably against the OECD average and the miserable performance of the UK (see figure below).</p>
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<p>Chile's success is thought to be due to increased investment in the country, increasing employment opportunities and real wages. Asa result, it is proposed, consumer confidence has risen increasing domestic demand for goods and services.</p>
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</div><div class="item_footer"><p><small><a href="http://www.chileno.co.uk/economy/chile-economic-growth-tops-oecd">Original post</a> blogged on <a href="http://www.chileno.co.uk/">Chileno</a>.</small></p></div>The latest OECD Economic Outlook report looks bleak for the majority of OECD countries and yet Chile is continuing its good growth of recent years. With 50 million out of work in the OECD areas, and no prospect of relief in the forseable future, the world economy is indeed "far from being out of the woods" as OECD Secretary General Angel Gurría put it in the organisation's Economic Outloook launch. Nevertheless, Chile's growth is forecast to reach 5.4% in 2014, whcih compares favourably against the OECD average and the miserable performance of the UK (see figure below).

Chile's success is thought to be due to increased investment in the country, increasing employment opportunities and real wages. Asa result, it is proposed, consumer confidence has risen increasing domestic demand for goods and services.

]]>http://www.chileno.co.uk/economy/chile-economic-growth-tops-oecd#commentshttp://www.chileno.co.uk/?tempskin=_rss2&disp=comments&p=157Chile has highest inequality in OECDhttp://www.chileno.co.uk/economy/chile-has-highest-inequality-in-oecd
Wed, 25 Apr 2012 05:21:00 +0000ChilenoChileEconomy83@http://www.chileno.co.uk/<p><span style="font-size: medium;">Chile became the first South American member of the Organisation for Economic Co-operation and Development (OECD) in 2010, following great strides in economic development. For example, Chile currently has a healthy <a href="http://www.chileno.co.uk/blogs/blog1.php/chile/national-debt-chile-and-the" target="_self">government borrowing to GDP ratio</a> projected to remain stable for at least the next few years. However, GDP and borrowing aren't everything when assessing the econmic health of a nation! As can be seen from the interactive chart below, Chile has the worst levels of inequality of all OECD members. The metric here can be interepreted in the following way: Higher scores mean more inequality and scores range from 0 to 1. With a score of 0 all individuals in a country would receive the same benefits (e.g. salary). In a scenario with a score of 1, a given country would have the maximum inequality, 1 person owning all the wealth, for example. For Chile the inequality index is around .5, not good, making them one of the leaders on this list of shame. In reality, the discrepancy between the haves and the have nots will only fester over time and become symptomatic through various manifestations such as strikes, riots and protests, as has recently been witnessed in the UK (ranking an unhealthy 7th on this list).&#160; With the rise of wealth in a country comes responsibility to bring along the majority of its citizens, not just the few...</span></p>
<script type="text/javascript" src="http://www-958.ibm.com/me/visualizations/79b0ac908ec211e1be64000255111976/comments/79b452288ec211e1be64000255111976.js?width=425&amp;height=350"></script><div class="item_footer"><p><small><a href="http://www.chileno.co.uk/economy/chile-has-highest-inequality-in-oecd">Original post</a> blogged on <a href="http://www.chileno.co.uk/">Chileno</a>.</small></p></div>Chile became the first South American member of the Organisation for Economic Co-operation and Development (OECD) in 2010, following great strides in economic development. For example, Chile currently has a healthy government borrowing to GDP ratio projected to remain stable for at least the next few years. However, GDP and borrowing aren't everything when assessing the econmic health of a nation! As can be seen from the interactive chart below, Chile has the worst levels of inequality of all OECD members. The metric here can be interepreted in the following way: Higher scores mean more inequality and scores range from 0 to 1. With a score of 0 all individuals in a country would receive the same benefits (e.g. salary). In a scenario with a score of 1, a given country would have the maximum inequality, 1 person owning all the wealth, for example. For Chile the inequality index is around .5, not good, making them one of the leaders on this list of shame. In reality, the discrepancy between the haves and the have nots will only fester over time and become symptomatic through various manifestations such as strikes, riots and protests, as has recently been witnessed in the UK (ranking an unhealthy 7th on this list). With the rise of wealth in a country comes responsibility to bring along the majority of its citizens, not just the few...

]]>http://www.chileno.co.uk/economy/chile-has-highest-inequality-in-oecd#commentshttp://www.chileno.co.uk/?tempskin=_rss2&disp=comments&p=83Chile has more 'economic freedom' than the UK & UShttp://www.chileno.co.uk/economy/chile-has-more-economic-freedom-than-the-uk-and-the-us
Sun, 08 Apr 2012 08:38:00 +0000ChilenoChileEconomy74@http://www.chileno.co.uk/<p style="text-align: left;">The Heritage Foundation has published the <a href="http://www.heritage.org/index/heatmap" target="_blank">2012 Economic Freedom Index</a> and the results make for interesting reading. For the first time the scores for <a href="http://www.heritage.org/index/country/chile" target="_blank">Chile</a> are higher than both the UK and the US. Chile is placed 7th this year on 78.3 overall points while the US are ranked 10th with 76.3. The UK did not make it into the top 10, sitting in 14th place on 74.1 points. But what does it all mean?<object style="display: block; margin-left: auto; margin-right: auto;" width="550" height="373" data="/open-flash-chart.swf?width=500&amp;height=500&amp;data=http%3A%2F%2Fwww.chileno.co.uk%2Fchart-data_economic_freedom.php" type="application/x-shockwave-flash"><param name="data" value="/open-flash-chart.swf?width=500&amp;height=500&amp;data=http%3A%2F%2Fwww.chileno.co.uk%2Fchart-data_lithium1.php" /><param name="src" value="/open-flash-chart.swf?width=500&amp;height=500&amp;data=http%3A%2F%2Fwww.chileno.co.uk%2Fchart-data_economic_freedom.php" /></object></p>
<p>The Economic Freedom Index is an attempt to provide a measurement of economic freedom that is comparable between diverse countries of the world. There are 10 indices nested within four categories:</p>
<ol>
<li>
<p><strong>Rule of law</strong> (property rights, freedom from corruption)</p>
</li>
<li>
<p><strong>Limited government</strong> (fiscal freedom, government spending)</p>
</li>
<li>
<p><strong>Regulatory efficiency</strong> (business freedom, labour freedom, monetary freedom)</p>
</li>
<li style="text-align: left;">
<p><strong>Open markets</strong> (trade freedom, investment freedom, financial freedom).</p>
</li>
</ol>
<p>The ten indicators for Chile this year are illustrated in the figure below:<img src="http://www.chileno.co.uk/blogs/media/blogs/a/Chile_2012.png" alt="" /><br /><strong>Definitions</strong></p>
<p><strong>Business Freedom</strong><br />This indicator refers to the ease with which businesses can start up and get running, without undue interference from the state. For example, in some countries (e.g. Hong Kong) setting up a licence to run a business can be achieved very quickly by completing a single form. In others, however, the process can be long-winded, taking days or weeks with numerous encounters with bureaucratic officials.<br /><strong>Trade Freedom</strong><br />Trade freedom means that an economy is open to imports from around the world and that individuals within a nation can be part of an international marketplace (buying and selling). Trade Freedom is often restricted by taxes and tariffs, therefore the indicator is in part defined by the lack of government involvement in international markets. <br /><strong>Fiscal Freedom</strong><br />This measure captures the extent of freedom allowed by government to businesses and individuals to keep and spend their income as they wish. Control comes not only in the form of income tax and other taxation but also through government debt which must ultimately be paid by individuals through further taxation.<br /><strong>Government Spending</strong><br />Excessive government spending on projects is thought to 'crowd out' the private sector, who could have otherwise have benefitted (and paid tax) from projects, whether they be public works providing infrastructure or funding research. Furthermore, it is argued that isolation from the private sector may increase bureacracy and waste, and reduce efficiency.<br /><strong>Monetary Freedom</strong><br />Monetary Freedom concerns the government's monetary policy in terms of inflation and stability. It is thought that low inflation is preferred along with an independent central bank. With low inflation, investments and savings can be made more confidently. In addition, inflationary prices act as an invisible tax stealing wealth. <br /><strong>Investment Freedom</strong><br />When investment is free and open, domestic and international entrepreneurial opportunites are increased, raising the likilihood of job creation and economic expansion. In theory, such investment should benefit society at large and not just individuals.<br /><strong>Financial Freedom</strong><br />Financial Freedom refers to the freedom given by the state to banking and financial services. Regulation that goes beyond transparency and honesty is likely to reduce efficiency and limit competition.&#160; For example, if government intervenes in the stock market, capital prices can be biased distorting the true market-driven value of products.<br /><strong>Property Rights</strong><br />Acquiring property and wealth is thought to be central to a healthy market economy. Property rights (including intellectual property) that are secure and protected by law allow individuals to be confident in saving, making long-term plans and engage in entrepreneurial activity.<br /><strong>Freedom from Corruption</strong><br />This indicator is defined as 'dishonesty or decay', or more fully, "a distortion by which individuals are able to gain personally at the expense of the whole." Specific examples of political corruption include: bribery, extortion, nepotism, cronyism, patronage, embezzlement and graft (profiting from public funds).<br /><strong>Labour Freedom</strong><br />By Labour Freedom the Index means the ability of individals to work as much as the want and of businesses to contract labour freely and to dismiss redundant workers when they are not required. It is suggested that trade unions may either incease freedom or an impediment to "efficient functioning" or labour markets but that with more freedom comes lower unemployment rates.</p>
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<p><br /><br />In other words it is a 'capitalism index'. The extent to which free markets operate in a country and how flexible governments are towards international investors and entrepreneurs. While investment in a country from overseas may benefit society at large due to job creation and increased revenue from taxation, it is unclear whether or not all will benefit from such freedoms. If workers are unprotected by unions and left open to the prospect of redundancy or forced onto short-term contract work, then as consumers, savers and investors in the property market and particpants in entrepreneurial activity, confidence is likely to be low and therefore such stabilising action will be low. Similarly, with Government spending, although there is evidence that through competition and the drive for profit, private companies often outperform their public sector counterparts, increased profit may not be the ultimate driver for a country; relying solely on such a motivation could be short-sighted. It may not even make economic sense. A case in point is copper mining in Chile. Although private mining tends to be more efficient than public, public ownership brings with it the&#160; benefit of keeping 100% of the profit in the coffers, rather than income from taxation only. Clearly, indicators such as Freedom from Corruption can be universally beneficial. Business Freedom also makes a lot of sense, as bureaucratic red-tape can tie up potential investors that could bring innnovation and job creation to a nation. While economic freedom is desirable in open and free societies, it should be granted primarily with the benefit of individuals within the country itself (particularly the poor and vulnerable) firmly in mind and not at their expense. So while the high scores achieved by Chile in economic freedom are encouraging, it will be sad to see a rampant form of capitalism undo the country's fabric...</p><div class="item_footer"><p><small><a href="http://www.chileno.co.uk/economy/chile-has-more-economic-freedom-than-the-uk-and-the-us">Original post</a> blogged on <a href="http://www.chileno.co.uk/">Chileno</a>.</small></p></div>The Heritage Foundation has published the 2012 Economic Freedom Index and the results make for interesting reading. For the first time the scores for Chile are higher than both the UK and the US. Chile is placed 7th this year on 78.3 overall points while the US are ranked 10th with 76.3. The UK did not make it into the top 10, sitting in 14th place on 74.1 points. But what does it all mean?

The Economic Freedom Index is an attempt to provide a measurement of economic freedom that is comparable between diverse countries of the world. There are 10 indices nested within four categories:

The ten indicators for Chile this year are illustrated in the figure below:Definitions

Business FreedomThis indicator refers to the ease with which businesses can start up and get running, without undue interference from the state. For example, in some countries (e.g. Hong Kong) setting up a licence to run a business can be achieved very quickly by completing a single form. In others, however, the process can be long-winded, taking days or weeks with numerous encounters with bureaucratic officials.Trade FreedomTrade freedom means that an economy is open to imports from around the world and that individuals within a nation can be part of an international marketplace (buying and selling). Trade Freedom is often restricted by taxes and tariffs, therefore the indicator is in part defined by the lack of government involvement in international markets. Fiscal FreedomThis measure captures the extent of freedom allowed by government to businesses and individuals to keep and spend their income as they wish. Control comes not only in the form of income tax and other taxation but also through government debt which must ultimately be paid by individuals through further taxation.Government SpendingExcessive government spending on projects is thought to 'crowd out' the private sector, who could have otherwise have benefitted (and paid tax) from projects, whether they be public works providing infrastructure or funding research. Furthermore, it is argued that isolation from the private sector may increase bureacracy and waste, and reduce efficiency.Monetary FreedomMonetary Freedom concerns the government's monetary policy in terms of inflation and stability. It is thought that low inflation is preferred along with an independent central bank. With low inflation, investments and savings can be made more confidently. In addition, inflationary prices act as an invisible tax stealing wealth. Investment FreedomWhen investment is free and open, domestic and international entrepreneurial opportunites are increased, raising the likilihood of job creation and economic expansion. In theory, such investment should benefit society at large and not just individuals.Financial FreedomFinancial Freedom refers to the freedom given by the state to banking and financial services. Regulation that goes beyond transparency and honesty is likely to reduce efficiency and limit competition. For example, if government intervenes in the stock market, capital prices can be biased distorting the true market-driven value of products.Property RightsAcquiring property and wealth is thought to be central to a healthy market economy. Property rights (including intellectual property) that are secure and protected by law allow individuals to be confident in saving, making long-term plans and engage in entrepreneurial activity.Freedom from CorruptionThis indicator is defined as 'dishonesty or decay', or more fully, "a distortion by which individuals are able to gain personally at the expense of the whole." Specific examples of political corruption include: bribery, extortion, nepotism, cronyism, patronage, embezzlement and graft (profiting from public funds).Labour FreedomBy Labour Freedom the Index means the ability of individals to work as much as the want and of businesses to contract labour freely and to dismiss redundant workers when they are not required. It is suggested that trade unions may either incease freedom or an impediment to "efficient functioning" or labour markets but that with more freedom comes lower unemployment rates.

In other words it is a 'capitalism index'. The extent to which free markets operate in a country and how flexible governments are towards international investors and entrepreneurs. While investment in a country from overseas may benefit society at large due to job creation and increased revenue from taxation, it is unclear whether or not all will benefit from such freedoms. If workers are unprotected by unions and left open to the prospect of redundancy or forced onto short-term contract work, then as consumers, savers and investors in the property market and particpants in entrepreneurial activity, confidence is likely to be low and therefore such stabilising action will be low. Similarly, with Government spending, although there is evidence that through competition and the drive for profit, private companies often outperform their public sector counterparts, increased profit may not be the ultimate driver for a country; relying solely on such a motivation could be short-sighted. It may not even make economic sense. A case in point is copper mining in Chile. Although private mining tends to be more efficient than public, public ownership brings with it the benefit of keeping 100% of the profit in the coffers, rather than income from taxation only. Clearly, indicators such as Freedom from Corruption can be universally beneficial. Business Freedom also makes a lot of sense, as bureaucratic red-tape can tie up potential investors that could bring innnovation and job creation to a nation. While economic freedom is desirable in open and free societies, it should be granted primarily with the benefit of individuals within the country itself (particularly the poor and vulnerable) firmly in mind and not at their expense. So while the high scores achieved by Chile in economic freedom are encouraging, it will be sad to see a rampant form of capitalism undo the country's fabric...